Israel Aerospace Industries (IAI) has posted record results, despite the challenges of the COVID19 Pandemic. Annual sales of approximately US$4.2Bn were reported for 2020, the highest since the company’s founding. There was also a 48 per cent growth in net income to US$133M, also the highest ever recorded by the company. A record gross profit and leap in operating income and EBITDA also occurred while the company’s Research and Development (R&D) activity crossed the US$1Bn threshold.
IAI recorded a growth in sales volumes to around US$4,184M compared to about US$4,108M in 2019 while there was also an increase of 23 per cent in annual EBITDA to about US$397M compared with approximately US$324M the previous year. Gross profit also saw a 15 per cent increase in 2020 to around US$665M (approximately 16 per cent of sales) compared with about US$577M in 2019 (around 14 per cent of sales) – an increase of some US$88M. Operating income increased by 61 per cent to about US$195M (around 4.7 per of sales) compared with approx. USD 121 million (approx. 2.9% of sales) in the previous year.
R&D activity increased by 13 per cent (both in-house and contracted) in 2020 to approximately US$1,036M compared to approx. US$909M in 2019. In addition, Net income grew by 48 per cent over the past year to around US$133M compared with a net income of about US$90M in 2019.
The company’s order backlog approximates US$12.6Bn, representing 3.13 years of operation. IAI also has free cash flows totalling approximately US$1.3Bn.